9 Answers
9

Tom is right. A little ways off Nilheim there will be a man with a broken cart called Telrav. You escort him back to his hideout and all the friendly "guards" reveal their bandit nature and ambush you. The problem is that you can get the generic bounty quest before meeting Telrav and thus they'll all stay guards. If you kill them all while they're just guards it bugs the Telrav encounter and it cannot be completed. If you only kill the "bandit chief" it should be fine.

I had the same issue just guards in and around the tower I killed the sleeping guard that the quest marker pointed to, he appears to be the only one in the tower he insisted that he was on my side and would not attack me, I then got the quest completed message when he died. Strangely non of the guards would attack me but if I rode my horse up to them they would attack it if I got off they totally ignored me and just attacked the horse even when I attacked them. I think the quest is a bit bugged hope it's the only one.

I randomly came across it and it seems a place the developers kind of brushed over rather quickly. there is an orc battle ax and a coin purse that don't respond when "highlighted", they say nothing (nobody was hired to do voice work/interaction with you), and I can pretty much do whatever I want there and they don't care.

Fitting that Nilheim means "home of nothing"

I figured there was a quest for this place that would make it more lively but seems not.

So i found that if you have the bounty quest before you find telrav, it does indeed bug and he walks back to his original position. However, if you kill him as he walks back, the guards turn in to bandits anyway and attack you.

There's a bounty letter given out to kill the bandit leader there at Nilheim. It seems to get effed in multiple ways because of telrav, however. For me, a dragon keeps attacking right when I am talking to Telrav. One time he actually survived the attack, I found him up in the camp, "escorted" him two feet to the marker on the stairs an he said he'd get my reward. He then walked down to where he was originally sitting and waiting for help and keeps saying "hmm?".

As for the bounty to kill the dude there, he's never turned hostile for me yet. Probably have to do this in an exact order (which is annoying in this case) to take care of the escorting and slaying of the leader. It's small, but I can't stand these types of bugs...

My roommate's replaying the game and had exactly the problem you describe here, complete with dragon attack. The solution is the same: start killing guards until the quest marker changes to "Kill Telrav".
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YamikuronueMay 17 '13 at 0:25

They are bandits, and you have to help telrav get back to his camp, then they ambush you. Assuming telrav is the leader. I blasted him off the cliff and the quest appears incomplete and I can't find his body :<

I didn't see any sort of quest triggers, or anything about getting anyone back to camp, and was not ambushed. I don't remember the guy's name but the arrow pointed to him and his death won me the bounty. It wasn't a miniquest, it was just a straight up bounty I got from an innkeeper.
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YamikuronueNov 18 '11 at 13:05